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The Determinants of Economic Well-being:An Application in the Indian States

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Author Info
Sudip Ranjan Basu (Graduate Institute of International Studies HEI , Geneva)

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Abstract

The purpose of this paper is to explore the determinants of economic well-being. We provide a methodology to compute well-being by aggregating different socio-economic dimensions with factor analysis technique. We also estimate quality of good governance (using latent variable approach) and a financial decentralisation index. Panel data is employed to explore if better quality of institutional arrangements (of governance and more financial decentralisation) lead to better outcome in the economic well-being index. The evidence shows a strong positive link ( from using data of 16 major Indian states over four points of time (1970s to 1997-latest)).

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File URL: http://129.3.20.41/eps/dev/papers/0509/0509009.pdf
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Publisher Info
Paper provided by EconWPA in its series Development and Comp Systems with number 0509009.

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Length: 34 pages
Date of creation: 08 Sep 2005
Date of revision:
Handle: RePEc:wpa:wuwpdc:0509009

Note: Type of Document - pdf; pages: 34. pdf format
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Web page: http://129.3.20.41

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Related research
Keywords: Economic Well-being; Governance; Decentralisation; Panel data; India;

Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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  1. Dasgupta, Partha & Weale, Martin, 1992. "On measuring the quality of life," World Development, Elsevier, vol. 20(1), pages 119-131, January. [Downloadable!] (restricted)
  2. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  3. Pranab Bardhan & Dilip Mookherjee, 1998. "Expenditure Decentralization and the Delivery of Public Services in Developing Countries," Boston University - Institute for Economic Development 90, Boston University, Institute for Economic Development.
  4. Sudip Ranjan Basu, 2005. "Estimating the Quality of Economic Governance: A Cross-Country Analysis," Econometrics 0509012, EconWPA. [Downloadable!]
  5. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  6. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December. [Downloadable!] (restricted)
  7. Andrea Bassanini & Stefano Scarpetta & Philip Hemmings, 2001. "Economic Growth: The Role of Policies and Institutions: Panel Data. Evidence from OECD Countries," OECD Economics Department Working Papers 283, OECD, Economics Department. [Downloadable!]
  8. A. Chong & C. Calderón, 2000. "Causality and Feedback Between Institutional Measures and Economic Growth," Economics and Politics, Blackwell Publishing, vol. 12(1), pages 69-81, 03. [Downloadable!] (restricted)
  9. Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 407-43, May. [Downloadable!] (restricted)
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  10. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
  11. Sen, Amartya, 1983. "Development: Which Way Now?," Economic Journal, Royal Economic Society, vol. 93(372), pages 742-62, December.
  12. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank. [Downloadable!]
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